Enterprise is the factor of production which combines the other factors of production(Land,Labour and Capital) to produce goods/services,bearing the risks involved.The reward for Enterprise is,hopefully,a profit.

Enterprise is the human activity which provides the initiative and carries the risk both financial and personal when setting up a business. It is spotting a niche in the market and combining the factors of production (Land, Labour, Capital) to fill that gap in the market for a reward of profit.

e.g Mark Zuckerberg showed enterprise when he set up Facebook, a social networking site.